ch1_8_5e - Practice Exam Chapters 1-8 During the course of...

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Practice Exam Chapters 1-8 During the course of your examination of the financial statements of the Haley Sporting Goods Corporation for the year ended December 31, 2009, you discover the following: a. Net income reported in the 2009 income statement is $42,000 before reflecting any of the following items. b. On November 1, 2009, $6,000 was paid for rent on the company's office building. The payment covered the three-month period ending January 31, 2010. The entire amount was debited to rent expense and no adjusting entry was made for this item. c. During 2009, the company received a $5,000 cash advance from a customer for merchandise to be manufactured and shipped in 2010. The $5,000 was credited to sales revenue. No entry was made for the cost of the merchandise. d. Haley borrowed $30,000 from a local bank on September 1, 2009. Principal and interest at 10% will be paid on August 31, 2010. No accrual was made for interest. e. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $1,200 were on hand at December 31. Required: Determine the proper amount of net income for 2009. 1 Problem I
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For the year ending December 31, 2009, the Castansa Corporation had income from continuing operations before income taxes of $2,000,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material: 1. During 2009, an earthquake caused $400,000 of damage to one of Castansa’s factories. The earthquake loss was considered unusual and infrequent. 2. In November of 2009, Castansa sold its restaurant chain that qualified as a separate
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This note was uploaded on 11/09/2010 for the course ACCT 301 taught by Professor Lynn during the Spring '10 term at University of Baltimore.

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ch1_8_5e - Practice Exam Chapters 1-8 During the course of...

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